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Microchip Technology says dip in semiconductor demand to be 'very mild' [New Vision (Uganda)](New Vision (Uganda) Via Acquire Media NewsEdge) Microchip Technology Inc , which three weeks ago forecast a broad downturn in semiconductor demand, said on Thursday that the worst was over and the dip would be minor. Shares of Microchip rose 4 percent in extended trade after the company forecast earnings per share for fiscal third quarter, which ends in December, in line with analysts' expectations. Chief Executive Officer Steve Sanghi told analysts on a conference call he expects weak business activity in China that hurt the company in the September quarter to have recovered by the end of March. Some of these smaller inventory corrections have come every couple of years or so, so it's really one of those, Sanghi said. This is a very mild one. On Oct. 10, the Philadelphia Semiconductor Index sank nearly 7 percent in reaction to a warning by Microchip that it had detected a broad slowdown in ordering by distributors who sell its products. It would seem things are maybe not as bad as the worst-case scenario we were girding for earlier, said Stifel Nicolaus analyst Kevin Cassidy after Microchip's call on Thursday. Microcontroller maker Atmel on Wednesday gave a current-quarter revenue forecast below Wall Street's expectations, in part blaming macroeconomic conditions affecting the whole chip industry. If it turns out that Microchip was wrong in making a cycle call, I would look in the mirror and personally take responsibility to correct whatever may be wrong in our business, Sanghi said. However, you are already starting to see commentary from late-reporting companies about bookings weakness. Shares of Microchip were up 4.4 percent in after-hours trading after closing down 2.68 percent at $41.09. COPYRIGHT (c) 2014 NEWVISION. ALL RIGHTS RESERVED. Provided by SyndiGate Media Inc. (Syndigate.info). |